Question 1201322
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Ashley has earmarked at most $950,000 for investment in three mutual funds: 
a money market fund, an international equity fund, and a growth-and-income fund. 
The money market fund has a rate of return of 6 %/year, 
the international equity fund has a rate of return of 10%/year, 
and the growth-and-income fund has a rate of return of 15%/year. 
Ashley has stipulated that no more than 25% of her total portfolio should be in the growth-and-income fund 
and that no more than 50% of her total portfolio should be in the international equity fund. 
To maximize the return on her investment, how much should Ashley invest in each type of fund?
money market fund    	$ 
international equity fund    	$ 
growth-and-income fund    	$ 

What is the maximum return?


<pre>
It is OBVIOUS, that under the given conditions, the most agressive strategy should be applied:

   - the maximum possible amount should be invested in the growth-and-income fund 
     at a rate of return of 15%/year;

   - the maximum possible amount should be invested in the international equity fund at 10%/year;

   - the rest should be invested in the money market fund at 6%/year.


So, 25% of $950,000 goes at 15% interest per year, or 0.25*950000 = 237500 dollars;

    50% of $950,000 goes at 10% interest per year, or 0.50*950000 = 475000 dollars;

    25% of $950,000 goes at  6% interest per year, or 0.25*950000 = 237500 dollars.


The maximum return /(interest) is 0.15*237500 + 0.1*475000 + 0.06*237500 = 97375 dollars.
</pre>

Solved.


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This problem is entirely intended to check a presence of common sense.